Battery Market Size, Share & Trends Analysis Report By Product (Lead Acid, Li-ion, Nickle Metal Hydride, Ni-Cd), By Application, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global battery market size was valued at USD 104.31 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 15.8% from 2023 to 2030. The high use of UPS devices in healthcare, chemical, and oil & gas sectors for continuous power supply is expected to propel the growth of the battery market. Lead acid batteries are used for critical applications because of their high reliability and low cost. However, lithium-ion battery is expected to capture a significant portion of the lead acid battery market during the forecast period on account of their low energy density and lightweight. The U.S. market is anticipated to witness substantial growth in the forecast period owing to favorable government policies and increasing electric vehicle and consumer electronics sales in the country.

The growing number of battery manufacturers in the U.S. is expected to promote market growth during the forecast period. The growing demand for electric vehicles in the U.S. and Mexico, on account of rising government efforts to reduce the carbon footprint by deploying eco-friendly products, is expected to augment the market growth during the forecast period.

The U.S. construction industry is expected to witness considerable growth owing to the demand for non-residential construction projects such as hospitals, schools, and colleges over the coming years. Implementation of the “Affordable Healthcare Act” in the U.S. is projected to stimulate the construction of a greater number of healthcare units and hospitals in the region. Favorable demographic trends, such as the growing population, are expected to lead to the construction of more offices, industrial plants, schools, and colleges, in turn, driving the demand for UPS in the construction sector.

Lithium-ion batteries are expected to penetrate lead acid battery applications including electric vehicles, plug-in electric vehicles, storage, and automobiles, thus, gaining a majority market share by 2024. High demand for portable electronics including smartphones, LCDs, tablets, and wearable devices, such as fitness bands, propel the battery market growth. The market is expected to witness significant growth on account of technological advancements in terms of product innovation, enhanced efficiency, and cost-effectiveness.

Global electrification and energy storage are booming due to the recent shift from fossil fuels to renewable energy sources. The demand for batteries alone is expected to increase significantly due to the e-mobility industry. Lithium-ion battery solutions are expected to probably predominate shortly, propelled by the EV industry.

Product Insights

The Lithium-ion segment led the market and accounted for 40.77% of the global revenue share in 2022 owing to the e-mobility sector. The EV industry is anticipated to drive the dominance of lithium-ion battery solutions in the coming years.

Lead-acid batteries accounted for the second-largest share of the global battery market in terms of revenue in 2022. Growing demand for rechargeable batteries, such as starting, lighting, and ignition (SLI) batteries, in the automotive sector is expected to augment the market growth during the forecast period.

Lithium-titanate-oxide (LTO) emerged as the fastest-growing product in the global battery market owing to the advantage of charging more quickly than all the other lithium-ion batteries. Innovations in the future and the ability to fast charge are expected to fuel the growth of the lithium-titanate-oxide market throughout the forecast period. 

End-use Insights

The automobile sector led the global battery market with a market share of 32.37% in 2022. Rising awareness about the benefits offered by battery-operated vehicles in regions such as Asia Pacific, Europe, and North America, is expected to contribute to the growth of lithium-ion batteries in the automotive end-use segment during the forecast period.

Electronics accounted for the second largest segment owing to the wide application in portable consumer electronic devices such as mobile phones, laptops, computers, tablets, torches or flashlights, LED lights, vacuum cleaners, digital cameras, wristwatches, calculators, and hearing aids.

Others end-use segment includes industrial, medical, construction, and firefighting. Most of these industries utilize batteries for supplying backup power to critical machinery and equipment. The increase in the number of hospitals and medical facilities worldwide that provide new and advanced healthcare services and treatment methods to the public is expected to fuel the growth of the medical, construction, and firefighting application segments in the lithium-ion battery market during the forecast period.

Application Insights

In 2022, Industrial batteries accounted for the largest market share of 35.85% in the application segment owing to growing requirements for efficient power backup and energy storage systems in various industries such as power generation, chemical manufacturing, marine, recreation equipment, and agricultural machinery & equipment. The usage of small-sized lithium-ion batteries in portable devices and other consumer electronics is expected to enhance market growth during the forecast period.

Automotive batteries were the second-largest application segment in 2022, which accounted for 34.62% of the global market share, in terms of revenue in 2022. The growth in passenger car production in developing countries including China, India, Brazil, and Russia is anticipated to enhance the market growth throughout the forecast period.

Regional Insights

Asia Pacific dominated the global market in 2022 and accounted for the largest revenue share of more than  55.67%. Commercial, residential, and grid storage are expected to witness significant growth on account of various factors including industrialization, urbanization, and increased disposable income in developing countries coupled with favorable regulations to attract investments in the region.

North America emerged as the second-largest regional market for battery during the forecast period. The North American construction industry is anticipated to grow significantly owing to the demand for non-residential infrastructure over the coming years. Increasing investment in eco-innovations including electric bikes, cranes, and forklift is likely to aid battery market expansion.

The growing demand for e-bikes along with solar power systems in the U.K., Germany, and the Netherlands is expected to stimulate market growth. The ever-increasing lead acid battery market in Germany, Spain, Italy, France, and the U.K. is expected to have a positive impact on the Europe battery market during the forecast period.

Key Companies & Market Share Insights

The global battery industry is a highly competitive market owing to the presence of major industries across the region as these companies are fairly concentrated and highly competitive. Some of the prominent players operating in the global battery market are:

• A123 Systems LLC

• BYD Company Ltd.

• GS Yuasa International Ltd.

• Hitachi, Ltd.

• Johnson Controls

• LG Chem

• NEC Corporation,

• Panasonic Corporation

• Samsung SDI Co., Ltd.

• Toshiba Corporation

Battery Market Report Scope

Global Battery Market Segmentation

This report forecasts revenue growth at global, regional, and country levels in addition to providing an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global battery market based on the product, end-use, application, and region:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Lead Acid

  • Lithium Ion

  • Nickel Metal Hydride

  • Nickel Cadmium

  • Lithium Titanate Oxide (LTO)

  • Others

• End-use Outlook (Revenue, USD Billion, 2018 – 2030)

  • Aerospace

  • Automobile

  • Electronics

  • Energy Storage

  • Military & Defense

  • Others

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Automotive Batteries

  • Industrial Batteries

  • Portable Batteries

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Central and South America

    • Brazil

    • Paraguay

    • Colombia

  • Middle East and Africa

    • Saudi Arabia

    • UAE

    • South Africa